STAND

STAND. COM. REP. 1486

Honolulu, Hawaii

, 2003

RE: S.B. No. 354

S.D. 2

H.D. 2

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 354, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ENERGY,"

begs leave to report as follows:

The purpose of this bill is to extend tax credits for heat pumps and ice storage systems that are installed and placed in service before July 1, 2007.

The Building Industry Association of Hawaii, Plumbing and Mechanical Contractors Association of Hawaii, Subcontractors Association of Hawaii, Plumbers and Fitters Union Local 675, Hawaii Solar Energy Association, Inter-Island Solar Supply, Economy Plumbing & Sheet Metal, Inc., Elite Mechanical, Inc., PowerLight Corporation, Trane Company, American Society of Heating, Refrigerating and Air Conditioning Engineers-Hawaii Chapter, and Acutron Co. Inc. testified in support of this measure. The Department of Business, Economic Development, and Tourism, The Gas Company, Hawaiian Electric Company, Hawaii Electric Light Company, Maui Electric Company, and Off-Peak/Elite Energy Group, LLC supported the intent of this measure. The Department of Taxation and Tax Foundation of Hawaii submitted comments.

Your Committee has amended this bill by:

(1) Specifying that after the 2003 taxable year, the tax credit may be claimed only upon a declaration by the Governor, provided that the general fund collections at the close of each of two successive fiscal years exceed 7.5 percent of the general fund tax collections for each of the two prior fiscal years; and

(2) Making technical, nonsubstantive amendments for purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 354, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 354, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Finance,

		____________________________ DWIGHT Y. TAKAMINE, Chair